ATD looks forward to continuing work with Cooper

HUNTERSVILLE, N.C. — Goodyear's purchase of Cooper Tire & Rubber Co. — finalized on June 7 — won't stand in the way of the relationship between Cooper and American Tire Distributors Inc. (ATD).

At least through 2021.

Keith Calcagno, chief merchant and strategy officer at Huntersville-based ATD, said in a statement to Tire Business that the tire distributor looks "forward to continuing our work with Cooper on several new product launches (including exclusive products) in the second half of 2021 that will be coming to our customers and continuing to help grow the Cooper, Mastercraft, Mickey Thompson and ATD's proprietary brands."

Mr. Calcagno said it will be "business as usual for us, and we are focused on delivering the broadest assortment of tires, wheels and shop supplies to our customers."

ATD, the largest independent tire wholesaler in North America, has been a longtime distributor of the Cooper brand, a partnership that Mr. Calcagno termed "a very long, deep and personal relationship."

In announcing the completion of the $2.5 billion cash and stock deal that unites the world's No. 3 and No. 13 tire makers, based on global sales, Goodyear Chairman, President and CEO Rich Kramer listed three items that won't change in 2021:

• Existing strategies for the brands, product portfolios, programs and promotions;
• Goodyear and Cooper production launches will remain on track; and
• In the near term, the plan for the "combined manufacturing footprint" will stay the same.

In addition, Goodyear stressed that distribution will remain the same in the short-term.

What happens beyond 2021 remains unclear.

ATD previously distributed Goodyear- and Bridgestone-branded tires, but those relationships were severed in mid-2018, just after Goodyear and Bridgestone opened TireHub L.L.C., a 50/50 wholesale joint venture headquartered in Atlanta.

"Goodyear does not anticipate any changes to the brand portfolios, programs, or distribution in 2021," Mr. Calcagno said. "ATD will be meeting with the Goodyear and Cooper business teams in the near future to discuss 2022 and beyond."

Mr. Calcagno said that throughout ATD's partnership with Cooper, "we have always focused on creating value for our customers as they serve consumers in the replacement tire market."

He said ATD remains "focused on driving the brand for our customers so they can serve the market and manage the ongoing evolution, challenges and complexity of the industry."

Just after the deal was announced on Feb. 22, ATD President and CEO Stuart Schuette told Tire Business that other "strategic scenarios" could emerge — including "other opportunities," as Goodyear and Cooper worked to close the deal.

"As our industry rapidly transforms, ATD continues to find new, innovative ways to serve its customers and partners and is committed to creating best-in-class partnerships that evolve the replacement tire industry today and into the future," Mr. Schuette said in a statement at the time.

The combined Goodyear/Cooper company expects to generate $17.5 billion in sales, narrowing the gap between Goodyear and the world's top two tire makers, No. 1 Group Michelin ($25 billion) and No. 2 Bridgestone Corp. ($24 billion plus).

Goodyear (No. 3) and Cooper (No. 5) represent more than $7.1 billion in tire-related sales in North America, behind No. 1 Michelin ($8.25 billion) and Bridgestone ($7.85 billion), according to Tire Business calculations.

More than 80% of Cooper's sales occur in North America, by far the greatest percentage of any major international tire company. By comparison, North America represents about 45% of Goodyear's global revenue.